Successful investing means not only capturing risks that generate expected return but reducing risks that do not. Avoidable risks include concentrated positions in one stock or one segment of the market, betting on countries or industries, and speculating based on market forecasts. To all these, diversification is the antidote.
Deschutes stresses that superior investment returns are created best by long-term participation in the global capital markets. Our clients benefit from customized portfolios that deliver reliable, low-cost, tax-efficient investment returns.
Our Essential Investing Principles
- Advisors should objectively select investments from the complete universe of available options.
- The advisor’s compensation should never be tied to the investments chosen.
- Not all investment risks carry a reliable reward – some are worth taking and others are not.
- Portfolio strategies should offer focused exposure to all the risk dimensions of the diversified capital markets.
- Investment success will be based on disciplined exposure to diversified portfolios over time.
- Lower investment costs. The most reliable way to increase investor returns is to lower costs.
Our performance reporting system lets our clients know exactly how their investments are doing. Most importantly, our reporting identifies your personal investments’ performance in comparison to the return needed to succeed in your financial plan.
Every Client is Different
We never recommend that a client take more risk than they are comfortable bearing. At Deschutes, we don’t push our clients toward increased investment risk. Rather, we strive to help the client make informed decisions surrounding how much investment risk is appropriate for their individual circumstances.
It is important to recognize that investments are only a means to an end. Whether you are an individual investor, plan trustee, or trust fiduciary, your portfolio should be structured to provide the greatest probability of attaining your financial goals.